Lemonade CEO says the company is trying to disrupt insurance by actually building trust with customers

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'Perhaps the costliest problem in insurance is distrust. People don't like their insurance companies,' Lemonade CEO Daniel Schreiber told CNBC's Jim Cramer.

Daniel Schreiber told CNBC on Thursday the insurance company's goal is to build trust with its customers, contending the lack of it is an expensive problem for the industry.

interview. "They don't trust their insurance companies. It doesn't matter how much money the insurance company has, people don't believe they're going to pay them when the day comes.", has sought out to build trust with its customers in a few ways. On one hand, he said the provider of renters, homeowners and pet insurance has used technology to build a quick, enjoyable user experience.

To help solve the conflict of interest people may believe is at hand, Schreiber said Lemonade established itself as aLemonade, launched in 2016, also operates under a flat-fee model, according to Schreiber. It's a business strategy employed by other tech companies, but it's not common in the insurance industry, he said.

Shares of Lemonade closed Thursday's session at $82.16 each. The stock hit a high of $96.51 on July 6, a few days after its IPO. It went into its public debut priced at $29 per share.

 

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I bought a policy from my agent. Chatted about her new baby. She found me a reasonably priced policy from a solid company that will actually pay out. It only takes 20 minutes once a year (and less if I cut out the chit chat about her kids.)

lemonade the restaurant?

Their coverage is not complete solution, they need to fix lot of shortcomings else consumer will pay a lot

Being able to buy an insurance policy in only 90 seconds? I checked their website and they’re claiming that their homeowner insurance starts at roughly $300/year? Very quick sign-up and low cost, what’s the catch?

Well that would be nice and would fit in with crazy 2020 so yay!

Fraud going to crush them..online policies no verification

Good luck!!

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